AuthorBy Björn Michels
Updated: August 29, 2022

Trading with a reputable online broker is a crucial factor for success in the international markets. At FX Scouts Tanzania, we help you find the broker that suits your trading needs.

Each year we spend thousands of hours testing brokers by opening accounts, testing their platforms, and rating them according to a set of over 200 metrics. We deposit real money with the brokers to ensure that the products and user experience they advertise are consistent with reality.

We have found that the best way for traders to choose a broker is to compare brokers side-by-side. The comparison tool below allows you to compare two brokers based on their ratings and features.

Select brokers to compare

Select brokers to compare

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Overall Rating
Min. Deposit
Regulation
Trading Desk Type
Trading Instruments
Forex Pairs
Crypto Pairs
Pros
Cons
Regulation
Trading Conditions
Trading Platforms
Deposit & Withdrawal
Education & Research
Assets Available
Customer Service
% Lose with this broker
Leverage
Spread
Hedging
Scalping
Account Types
Islamic Account
Trading Platforms
Funding Methods
Trading Commission
11110.54.33/ 5 USD 10CySEC Regulated BrokersFCA Regulated BrokersFSCA Regulated Forex BrokersFinancial Services CommissionECN/DMA, Market MakerCommodities, Stock CFDs, Forex, Indices, Metals620
  • Good for beginners
  • Excellent education
  • Well regulated
  • Low minimum deposit
  • Copy trading accounts
  • Expensive withdrawals
Read Review 111104/ 5 11110.54.5/ 5 11110.54.5/ 5 111003/ 5 111115/ 5 11110.54.5/ 5 111115/ 5 81%2000:10 pips Advantage, Advantage Plus, Micro Account MT4, MT5Mastercard, Visa, Bank Transfer, Neteller, Skrill, Fasapay, PerfectMoneyFrom 4 USD / ECN Accounts
11110.54.38/ 5 USD 100ASIC Regulated Forex BrokersFSCA Regulated Forex BrokersBritish Virgin Islands Financial Services CommissionFinancial Services AgencyCySEC Regulated BrokersCentral Bank of IrelandMarket MakerBonds, Commodities, Cryptocurrencies, Stock CFDs, ETFs, Forex, Indices, Vanilla Options5520
  • Good for beginners
  • Well regulated
  • Low minimum deposit
  • Dealing desk
  • Limited market analysis
Read Review 111104/ 5 11110.54.5/ 5 11110.54.5/ 5 11110.54.5/ 5 111115/ 5 11110.54.5/ 5 111104/ 5 71%400:10.90 pips Islamic, Professional, Retail MT4, MT5, Avatrade Social, AvaOptionsSkrill, WebMoney, Neteller, Bank Transfer, Mastercard, Visa, Maestro, POLi, PaypalFees Included in Spread

How do AvaTrade and FXTM stack up against each other?

The Radar Chart below highlights how the brokers stack up against each other across various metrics. The highest score a broker can receive in each area is 5.

AvaTrade

FXTM

At FX Scouts Tanzania, we help traders find the broker that suits their trading needs. In many cases, the best way to achieve this is to compare brokers side-by-side.

To compare AvaTrade and FXTM, we used the same factors we use when reviewing brokers: The trust and regulation of the broker, the trading platform, the costs and trading conditions, and the level of education and market analysis available at the broker.

Does AvaTrade or FXTM have a better trust and regulation rating?

Trust and regulation are some of the most important factors to consider when choosing a Forex broker. Trust in the Forex trading business is almost entirely founded upon regulation. We spend many hours evaluating the safety of each broker by delving into their fine print and confirming each one of their regulatory licences on the online registers. The more top-tier authorities a broker is regulated by, the higher its trust rating.

In our comparison, we found that AvaTrade holds two Tier 1 and three Tier 2 licences, and FXTM holds one Tier 1 and one Tier 2 licences.

 

Can I trust AvaTrade?

Yes as AvaTrade was founded in 2006 and is regulated by ASIC, B.V.I FSC, CBI, CySEC, FRSA, FSA-Japan and FSCA.

 

Can I trust FXTM?

Yes as FXTM was founded in 2011 and is regulated by CySEC, FCA, FSC and FSCA.

 

Based on these findings, AvaTrade earned a higher trust rating than FXTM.

Does AvaTrade or FXTM have lower costs?

Another important aspect we consider when comparing brokers is the cost of trading. When evaluating trading costs, we always consider the minimum deposit required to open an account and the ongoing trading costs, including the spreads and commissions. When calculating trading costs, we measure the cost to trade one lot of EUR/USD using the broker’s account with the lowest minimum deposit. The cost includes both the spread and any commission charged. 

Not all brokers publish their trading costs, so we often open accounts and trade on their platforms to verify the spreads and commissions. Based on our reviews, we found that AvaTrade has overall lower trading costs than FXTM. 

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Broker
Trading Conditions
Base Currencies
EURUSD (Standard)
Trading Cost (Standard)
EURUSD (Best)
GBPUSD (Best)
USDJPY (Best)
Commission
FXTM
11110.54.5/ 5
USD, GBP, EUR, NGN
1.50 pips
USD 15
0.00 pips
0.20 pips
0.00 pips
USD 0
AvaTrade
11110.54.5/ 5
USD, GBP, EUR, AUD, ZAR, CHF
0.90 pips
USD 9
0.90 pips
1.60 pips
1.10 pips
USD 0

 

Does AvaTrade or FXTM offer a better choice of trading platforms?

Traders want Forex brokers to offer them a choice of trading platforms, so we give brokers who offer multiple platforms higher ratings. Trading platforms we consider include MetaTrader4, MetaTrader5, cTrader and proprietary mobile and web-based platforms. 

In this case, AvaTrade offers support for AvaOptions, Avatrade Social, MT4 and MT5 and FXTM offers support for MT4 and MT5. 

Do the brokers offer copy trading?

Copy trading is a great option for beginner traders who can’t trade full-time or lack experience with Forex trading. In this case both AvaTrade and FXTM offer copy trading.

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Broker
Platform Choice
Copy Trading
Platforms
FXTM
11110.54.5/ 5
AvaTrade
11110.54.5/ 5
Avatrade Social
AvaOptions

 

Which broker offers a better choice of trading instruments?

A variety of CFD instruments – and a large range of CFDs for each instrument category allow traders more opportunities for profitable trading. The best brokers will have thousands of CFDs to trade, covering all these instrument categories. We found that FXTM offers a greater range and depth of instruments to trade than AvaTrade. FXTM offers 62 Forex pairs to trade and AvaTrade offers 55 Forex pairs to trade.

Toplist Forex Pairs

And what about Cryptocurrencies?

In this case, AvaTrade offers 20 cryptocurrencies while FXTM offers 0 cryptocurrencies. So if you want to trade cryptocurrencies, we advise trading with AvaTrade.

Which broker offers better deposit and withdrawal processes?

Although brokers may have reasonable trading fees, many traders are caught out by the high non-trading fees charged by some brokers, including deposits and withdrawals. Traders want to be able to deposit and withdraw funds quickly and cheaply. Most brokers have multiple funding methods with zero fees for making deposits, but some brokers make it more expensive and take longer to process withdrawals. 

We rate brokers more highly that process withdrawals within 24 hours by multiple withdrawal methods and without charging processing fees. We found that FXTM charges a withdrawal fee and AvaTrade does not. Overall, AvaTrade has better deposit and withdrawal processes than FXTM. 

Which broker offers better educational support?

We often find that brokers offer very little in the way of educational materials, forcing traders to use other third-party sites or self-educate elsewhere. Beginner traders need well-structured, well-presented materials in multiple formats to get a good start at trading. More experienced traders also benefit from webinars led by experts in the field and advanced trading strategy sections with new trading ideas. 

AvaTrade and FXTM both have very good educational support. Both AvaTrade and FXTM offer educational support for more experienced traders.

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Broker
Beginner Course
Advanced Course
Well Structured Education
Education Quality
Webinars
FXTM
High
AvaTrade
High

 

Which broker offers better market analysis materials?

To successfully predict the price movements of an instrument, traders will need access to frequent market research and analysis. We find that research and market analysis are always better when they are produced in-house and updated frequently. Third-party resources don’t show the same expertise in trading ideas, so we place a strong emphasis on frequent in-house updates. Some brokers also often offer interactive webinars where traders can learn from experts in the field. 

We found that AvaTrade offers better research analysis than FXTM and that both AvaTrade and FXTM offer frequent webinars.

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Broker
Economic Calendar
Autochartist
Trading Central
Trading View
Free VPS
FXTM
AvaTrade

 

Our overall Verdict on AvaTrade

AvaTrade is an internationally and FSCA regulated CFD broker offering trading on Forex, cryptocurrencies, commodities, indices, stocks, bonds and EFTs. AvaTrade has one of the best mobile trading applications in the industry and, unlike many global brokers, offers a local South African customer support team. 

AvaTrade has over 200,000 active traders on the MT4, MT5, and AvaGo platforms and provides free access to trading tools like Autochartist, Duplitrade and AvaProtect, its own innovative risk management system.

While AvaTrade is a dependable broker for beginners, professional traders looking for advanced educational material and industry-leading market research will be underwhelmed.

Our overall Verdict on FXTM

FXTM is a multi-regulated FSCA registered CFD broker offering clients trading on Forex, cryptocurrencies, indices, metals and stocks. With a complete education and market analysis section, and the unique FXTM Invest copy trading platform, FXTM is plagued by unfavourable trading conditions and platform choice limits on their entry-level accounts and charging withdrawal fees.

Beginners at FXTM will find a good overview of how Forex trading works and the basics of a beginners course in their guides and tutorials, webinars, ebooks, trading glossary and videos that cover beginner and intermediate topics. Daily market analysis will help beginners understand the real-world implications of news events on the Forex market and where the opportunities lie. However, Serious beginners should consider the ECN Account (minimum deposit 500 USD) or the ECN Zero Account (minimum deposit 200 USD) as trading conditions dramatically improve to fall in line with industry averages.

Which broker has the highest overall rating?

AvaTrade has an overall rating of 4.38 and FXTM has an overall rating of 4.33. For more detail please read our reviews of AvaTrade and FXTM.

Featured Brokers

Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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